The upstart exchange traded fund industry is pushing into the separate accounts space, with more advisors and institutional investors turning to the easy-to-use, low-cost ETF managed portfolio strategies for clients.
ETF managed portfolios tracked by Morningstar now include 645 strategies from 145 firms, with $80 billion in assets under management as of of June 2013, representing 18% growth year-to-date and 46% growth year-over-year, writes Andrew Gogerty, ETF Managed Portfolios Strategist, for Morningstar.
This new bred of managed accounts are investment strategies that typically hold more than 50% of portfolio assets invested in ETFs. ETF managed portfolios are being utilized as both stand-alone investment strategies and a complete, one-stop offerings. [ETF Managed Portfolios: Disruptive Innovation and Mutual Funds]
Global strategies take up the lion’s share of the space, accounting for 64% of industry assets. Global all-asset strategies make up $29 billion and continue to attract advisors and institutional interest.
Equity managed portfolios remain the largest asset breadth group, holding $33 billion in assets.
The largest ETF managed portfolio providers include Windhaven Investment Management with $17.4 million in assets, F-Squared Investments $13.5 million, Good Harbor Financial $5.5 million, Innealta capital $4.1 million and Morningstar $3.9 million.
In the first six months, the best performing ETF managed portfolio strategies include U.S. equities up 11.0%, global equities up 5.7% and U.S. all asset up 4.3%.
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.